By Jay Almond, News Editor
Thursday, May 8, 2008
May 07, 2008 01:41 pm
—
Despite verbal support from local government officials, a one-quarter cent local option sales tax was summarily rejected by voters by a roughly 2 to 1 margin.
The referendum, which was approved by the Stanly County Board of Commis-sioners in March, gave voters the option to institute the sales tax to support public infrastructure and facilities.
A $1 million budget shortfall faced by the Stanly County School System is one place the new revenue stream might have landed.
Likewise, county infrastructure expansion could lack for funding, depending on the board’s subsequent actions.
For now, local leaders will have to look elsewhere for financial support to grow resources and provisions as the county’s population and need for services increases.
“We’re going to have to go back to the budget and do some cutting,” Stanly County Manager Jerry Myers said.
“It will slow us down on a number of projects we had planned.”
A proposed new Emer-gency Services base and 911 communications center is one project that could be hampered by the rejected tax.
That project, which may flounder in its infancy, appeared to be moving forward Monday night when the board completed the purchase of land near the N.C. 24-27 bypass for development of the center.
Alternatives to fund local growth include an increase in property tax or a tax on land transfers.
Property taxes would have to spike by 4-cents to match the one-quarter cent sales tax option’s $1.34 million funding power.
A land transfer tax, which would be limited to a four-tenths of a percent increase, would raise an estimated $847,872 based on an average of 2006 and 2007 land transfer figures from deed stamp receipts, according to state data.
Additionally, loans and their accompanying debt could be tapped for funding sources.
“We may have to do some borrowing,” Myers said.
“And it will be up to the commissioners to decide what happens with property taxes when they set the budget.”
Jay Almond can be contacted by email at snaponline21@carolina.rr.com.
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